Benchmark Co. analyst Bill Sutherland maintained a Buy rating on Select Medical today and set a price target of $21.00.
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Bill Sutherland has given his Buy rating due to a combination of factors including Select Medical’s solid financial performance and positive growth outlook. The company reported results for the second quarter that were largely in line with expectations, with revenue reaching $1.34 billion and adjusted EBITDA closely matching street estimates. The adjusted EPS exceeded expectations due to a lower tax rate and a reduction in shares outstanding, which reflects a positive financial maneuver.
Looking ahead, Sutherland is optimistic about Select Medical’s future, particularly with the anticipated growth in EBITDA for the latter half of the fiscal year 2025 and into 2026. The company is expected to benefit from positive rate updates across all segments, with Inpatient Rehab continuing to show robust growth. Additionally, the stock is currently undervalued compared to its peers, presenting a potential for rerating as growth resumes. These factors collectively contribute to the Buy rating, indicating confidence in the company’s ability to deliver strong financial performance moving forward.
According to TipRanks, Sutherland is an analyst with an average return of -5.4% and a 36.96% success rate. Sutherland covers the Healthcare sector, focusing on stocks such as Select Medical, Omnicell, and Clinigence Holdings.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $18.00 price target.